Dealing with sudden spousal loss is a prospect most of us find challenging to confront. However, statistics gleaned from the U.S. Census data bring to light a harsh reality: a majority of married women will likely face this type of loss and be propelled into an independent life during their latter years. When such a drastic spousal loss transpires, it could lead to an abrupt initiation into financial self-reliance during an emotionally vulnerable period. The consequential decisions that need to be made during this period can leave a lasting imprint on your future financial stability.
Anticipating the Unforeseen Spousal Loss
The term “sudden loss” inherently implies unpredictability, as we cannot foresee our reactions to such life-altering events until they occur. Despite the impossibility of full preparation for the combined strain of personal trauma and financial matters following a spousal loss, there exist measures that can aid you through this challenging time. The key lies in finding a method to incorporate structure into your life when it appears to be collapsing.
Immediate Action Post-Spousal Loss
In the immediate aftermath of spousal loss, certain issues require prompt attention:
- Notifying family and friends.
- Organizing the funeral.
- Engaging an attorney to review your spouse’s will and oversee the legal aspects of their estate.
Your closest companions and trusted advisors can provide valuable support during these early stages and aid with initial decision-making. However, it’s crucial to proceed with caution regarding significant financial decisions such as selling your home, borrowing or lending money, investing, making large purchases, or changing your employment or career path.
Your financial resources may be stretched due to conflicting demands following spousal loss. Understanding your financial situation may require some time if your spouse was the primary earner. During the initial months post-loss, prioritize paying essential bills and practice careful spending, focusing on cash flow and liquidity.
Financial Recovery Following the Initial Shock of Spousal Loss
While certain responsibilities like timely tax return filing cannot be ignored, the majority of the financial recovery process should align with your emotional recovery post-spousal loss.
You’ll eventually need to tackle crucial issues such as evaluating the needs of dependent children, making housing decisions, determining income needs, deciding on insurance settlements, reviewing your insurance needs, and learning to manage finances independently.
Many of these decisions may naturally arise from your evaluation of your role in the workforce. Questions to ponder include: Will you want or need to work? If you’re presently employed, will you continue in your current role? If you’ve been out of the workforce for some time, how compatible are your skills with the current job market? Will further education or skill enhancement be necessary?
While professional guidance can be beneficial, resist pressure to make hasty decisions in areas requiring more thought. Your primary aim should be establishing control and confidence over your financial future post-spousal loss. Engage with advisors ready to work at your pace and support you in gaining the knowledge and confidence needed to manage finances independently.
The proactive step of educating yourself about financial matters can significantly improve your readiness for the potential of sudden spousal loss. The quality of your life could depend on your financial literacy and preparedness to manage your financial affairs independently.
If you are a Legacy client and have questions, please do not hesitate to contact your Legacy advisor. If you are not a Legacy client and are interested in learning more about our approach to personalized wealth management, please contact us at 920.967.5020 or connect@lptrust.com.
This newsletter is provided for informational purposes only.
It is not intended as legal, accounting, or financial planning advice.
